financial aid; private scholarships; requirements

HB2297 - financial aid; private scholarships; requirements

Education Housing

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Cesar Aguilar, Lorena Austin, Seth Blattman, Junelle Cavero, Brian Garcia, Aaron Márquez, Mariana Sandoval, Betty J Villegas
Last action: 2026-01-21
Official status: House second read
Effective date: Not listed

Plain English Breakdown

The official text confirms the effective date is the 2027-2028 school year, but does not specify an exact calendar day.

HB2297: Arizona Ban on Scholarship Displacement Act of 2026

Starting in the 2027-2028 school year, this law stops eligible Arizona universities and community colleges from lowering a student's gift aid just because they receive money from private scholarships.

What This Bill Does

Requires schools to keep giving their original amount of grant or scholarship money even if the student gets extra help from outside groups.
Allows schools to reduce gift aid only by the small amount that total aid goes over the actual cost of attending school.
Stops schools from counting private scholarships when they first decide how much financial aid to offer a student.
Lets schools talk with students and scholarship donors if money is meant for specific uses like books or housing.

Who It Names or Affects

Universities under the Arizona Board of Regents
Community colleges in Arizona
Students who qualify as residents and are enrolled in degree programs at these schools

Terms To Know

Gift aid: Money given to students for school costs that does not need to be paid back, such as grants or scholarships.
Private scholarship award: Financial help from private companies, foundations, nonprofits, or charities, but not from the university itself or the government.
Cost of attendance: The total price for tuition, fees, books, supplies, living costs, and transportation needed to go to school.

Limits and Unknowns

This rule only starts in the 2027-2028 school year.
It does not apply to money given by university foundations or government agencies.
The law applies only to students who are Arizona residents and enrolled in degree programs.

Bill History

2026-01-21 House
House second read
2026-01-20 House
House Rules: None
2026-01-20 House
House Education: None
2026-01-20 House
House first read

Official Summary Text

HB2297 - financial aid; private scholarships; requirements

Current Bill Text

Read the full stored bill text

HB2297 - 572R - I Ver

REFERENCE TITLE:
financial aid; private scholarships; requirements

State of Arizona

House of Representatives

Fifty-seventh Legislature

Second Regular Session

2026

HB 2297

Introduced by

Representatives
Aguilar: Austin, Blattman, Cavero, Garcia, M�rquez, Sandoval, Villegas

AN
ACT

amending title 15, chapter 13, article 6,
Arizona Revised Statutes, by adding section 15-1706; relating to financial aid.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it enacted by the Legislature of the State of Arizona:

Section 1. Title 15, chapter 13, article 6,
Arizona Revised Statutes, is amended by adding section 15-1706, to read:

START_STATUTE
15-1706.

Private scholarships; financial aid awards; prohibitions;
definitions

A. Beginning in the 2027-2028
school year and notwithstanding any other law, an eligible postsecondary
education institution may not:

1. Reduce a student's gift aid
because the student receives or is designated to receive a private scholarship
award, except that the student's gift aid may be reduced by up to the amount by
which the gift aid exceeds the student's actual cost of attendance.

2. Consider a student's private
scholarship awards when determining the financial aid award, including gift
aid, for that student.

B. An eligible postsecondary
education institution may consult with students and the providers of private
scholarships to identify instances when private scholarships and gift aid are
limited to specific purposes.

C. For the purposes of this section:

1. "Cost of attendance"
includes the cost of tuition and fees, books and supplies, living expenses and
transportation expenses and any other costs used to calculate a student's
financial need for the purposes of student aid programs under title IV of the
higher education act of 1965 (P.L. 89-329; 79 Stat. 1219; 20 United
States Code sections 1070 through 1099
d
).

2. "Eligible postsecondary
education institution" means a university under the jurisdiction of the
Arizona board of regents or a community college as defined in section 15-1401.

3. "Gift aid" means all
financial aid that is designated for a student's postsecondary educational
expenses and that is not a loan or work study program.

4. "Private scholarship
award":

(
a
) Means
financial assistance that is awarded to a student by a private company, private
foundation, nonprofit organization or charity.

(
b
) Does not
include financial assistance that is awarded by a university foundation or
government entity.

5. "Student" means a person
who both:

(
a
) Qualifies
for in-state student status as prescribed in section 15-1802.

(
b
) Is enrolled
in an associate or baccalaureate degree program offered by an eligible
postsecondary education institution.
END_STATUTE

Sec. 2.
Short title

This act may be cited as the
"Arizona Ban on Scholarship Displacement Act of 2026".